Government Introduces 'Vivad Se Vishwas' Scheme 2.0 to Reduce Tax Disputes

The Budget 2024-25 proposes the 'Vivad Se Vishwas' scheme 2.0 aimed at reducing tax litigation. Key changes include shorter reassessment timelines and higher thresholds for appeals. Also, a comprehensive review of the Income Tax Act, 1961, is proposed to simplify tax laws and minimize disputes.

The Government unveiled the 'Vivad Se Vishwas' scheme 2.0 in the Budget 2024-25 on Tuesday, aiming to reduce tax litigation and streamline processes.

New measures include shorter reassessment timelines, with periods cut from 10 years to 5 years for income above Rs 50 lakh. Other changes involve increasing the monetary limits for filing appeals.

Finance Minister Nirmala Sitharaman also announced a comprehensive review of the Income Tax Act, 1961, to make it more concise and easier to understand. The review aims to reduce disputes and provide tax certainty to taxpayers.